Income Report and Income Tax
Understand Your Income Report and Its Importance for Income Tax
Hello! If you have received or are expecting to receive your income report, this post is for you! We will explain clearly and objectively what this essential document is and how to use it for your income tax return.
What is the Income Report?
The income report is a crucial document for filing income tax, both for individuals and companies. It provides information about the amounts you received throughout the year, including salaries, rent, earnings from financial investments, profits, dividends, or any other type of taxable income.
Income Report for Individuals
If you are an individual, this document is provided by banks, employers, companies where you provide services, and even by the Social Security (INSS) in the case of retirees and pensioners. It details your taxable income, tax-exempt income, income tax withheld at source, and social security contributions. You need this report to correctly fill out your income tax return and avoid issues with the IRS (Receita Federal).
Income Report for Companies
For businesses, the income report is fundamental for calculating and declaring Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL). It shows revenues and taxes paid over the period. Additionally, companies that make payments to third parties are required to provide income reports to their suppliers and service providers, when applicable.
How to Use the Income Report?
- For Individuals: Use the report’s data to complete your income tax return in the IRS’ program, ensuring that you fill in the corresponding fields correctly.
- For Companies: Use the data to correctly calculate IRPJ and CSLL, and if you have employees or service providers, don’t forget to issue the income report within the deadline.
Important Deadlines
Pay attention to the deadlines!
- Companies have until the end of February to deliver the income report to their employees and service providers.
- The individual income tax return is usually due by the end of April.
- The corporate income tax return follows specific rules depending on the tax regime adopted.
Remember to keep this document for your records. If you still have any questions, please contact us!